[Core] SEED to UNFI and UP process

Background

Unifi Protocol is proud to be the first DeFi platform to integrate blockchain node staking rewards into its ecosystem with the introduction of uStake.

The rapid development of uStake was made possible by Unifi acquiring the assets of multi-chain staking provider Sesameseed. Unifi will gain and operate blockchain nodes on IoTeX, Icon, Ontology, Harmony, Tron and Waves. These 6 nodes currently have a combined stake of approximately $13.1M staked to them by over 250,000 blockchain addresses. These nodes will be rebranded to reflect their operation by Unifi Protocol.

Unifi has also obtained the approximately $1 Million SEEDGerminator developer fund. This fund will be used by Unifi to create and accelerate future development on the Unifi Protocol. The growth of the protocol benefits all token holders, and will highlight the importance of UNFI community governance.

Finally, this acquisition provides Unifi with expertise in operating blockchain nodes, managing a multi-chain staking community, smart contract development, blockchain integration with social media, multi-chain wallet creation, cross-chain token swaps, project acceleration, and grants application and administration.

Transitioning SEED holders into UNFI and UP holders

Part of Unifi’s acquisition plan includes a special 4 phase event to convert the approximately $8.5M of blockchain assets stored in the SEED token’s redeem value into UNFI and UP. In particular, the second phase of the plan will include an UP mint rate and contribution to the UNFI Super Pair.

Phase 2: Begins August 1, 2021 SEED holders will be allowed to mint UP with the base tokens stored in the redeem value of SEED. The UP will be minted on the same blockchain on which the SEED token resides.

A SEED migration will be held where SEED holders can claim the UNFI that was stored in SEED’s redeem value.

Through this process 275,000 SEED holders across 4 Unifi blockchains will be given the opportunity to contribute to the Unifi Protocol ecosystem, and become Unifi token holders. This will encourage each of those SEED holders to learn about the Unifi Protocol and the benefits of being UNFI holders.

The absorption of such a large project and token has already driven several blockchain media outlets to write about Unifi. The successful adoption and completion of this plan will help ensure a successful launch to uStake, as well as boost the Unifi token economy on several blockchains.

Proposed UP Minting Rates

As previously announced, it will be a function of the UNFI GGM to provide guidance and oversight of the UP mint rates for various trading pairs and projects. This acquisition presents an unique opportunity to absorb up to $8.5M in value from the native blockchains tokens backing the redeem value of SEED. This value will be absorbed into the UNFI and UP token ecosystem through a conversion process.

Sesameseed is proposing UNFI holders approve the following UP minting process specifically for the SEED to UP conversion. As SEED holders claim UP on Unifi blockchains, new UP tokens will be minted using the base tokens that are backing each SEED. 1% of the base tokens will be contributed to the PUR, raising the redeem value of all UP on that blockchain. In other words, 1% of the native tokens backing any SEED which participate in the process will be reserved to increase the redeem value of UP on Unifi blockchains.

Furthermore, an additional 2% contribution of every UP minted during this process will be shared with the UNFI Super Pair on the blockchain where the UP was minted.

UNFI Holder Input and Discussion

Unifi recognizes there may be questions or discussion among UNFI holders about the benefits of adding the value contained in the SEED token to the Unifi ecosystem. Due to certain deadlines that must be met to ensure the success of this process, this referendum will close on Wednesday, July 21, 2021. UNFI token holders are encouraged to discuss this on Unifi social media:

Dedicated subreddit thread for this Referendum

Telegram Community Channel - t.me/unifi_protocol

Twitter - using the hashtag #UNFIreferendum.

UNFI holders are also encouraged to use the community referendum process as a means of measuring and creating consensus among UNFI holders. All community discussion should endeavor to be complete prior to the close of this core referendum on July 21.

Referendum

This acquisition sets a precedent on the adaptability of the Unifi ecosystem to absorb new sources of fees and differing communities into the Protocol. As the interests of new and diverse groups of people are added to the blended Unifi ecosystem, their goals become aligned behind the growth of Unifi. This growth then benefits all current token holders which encourages even more growth.

Unifi is seeking approval from UNFI token holders on the SEED to UNFI and UP conversion process, consisting of a contribution of 1% to the PUR for every UP minted, and 2% of every UP minted contributed to the Super Pair on that blockchain.

Please vote Yes to approve, or No.